The Value of Value Investing

The more risk you take, the more return you should expect to earn in the long-term. This is the reason why value stock investing has been popular since the New York Stock Exchange opened its doors in 1792. Value investing involves the study of financial data to determine appropriate company valuation and then investing in the [...]

Why Johnny Can’t Forecast

Analyst Earnings Estimate Accuracy has Declined Since Title 5 Over the past 10 years, stock analyst forecasts have underestimated company earnings 65 percent of the time. Over the past 5 years, 70 percent of companies beat estimates, and so far in 2010, more than 71 percent of companies reported better than expected earnings according to [...]

Gurus are Still Wrong After 80 Years

Stock forecasters were wrong during the 1920s and are still wrong today. Alfred Cowles III (1891 – 1984) was an American economist, businessman and founder of the Cowles Commission at Yale University in 1932. He dedicated his life to elevating economics into a more precise science using mathematical and statistical techniques. When the Cowles Commission [...]

8 Bad Excuses for High Advisor Fees

The last bastion of gluttony in the investment industry is stubbornly high financial advisor fees. It’s as though technology has passed over this business and financial advisors are getting rich from increasing profit margins. There are more than 10,000 advisors who charge fees based on the size of the portfolio under management. The average advisor [...]